moraine gm plant
Contract talks stall on health care trust fund
IUE-CWA, which represents 2,300 workers at Moraine plant, also concerned about future work.
Saturday, February 16, 2008
MORAINE — Contract talks between representatives of General Motors Corp. and the union that represents workers at GM's only Dayton-area plant broke up Friday afternoon, Feb. 15, and will resume Tuesday, Feb. 19, a union officer said.
"We've got the basic nuts and bolts of the contract moving quite well," said Harry Bogan, director of the International Union of Electronic Workers-Communication Workers of America's Region 7.
Extras
The IUE-CWA represents about 2,300 workers at GM's SUV assembly plant in Moraine.
One big issue that awaits resolution is the possible creation of a VEBA trust fund — a voluntary employees beneficiary association — such as the one the United Auto Workers accepted in its contract negotiations with GM in 2007.
In a VEBA, companies make a tax-free contribution to a trust fund, which would be overseen in this case by the IUE-CWA. The union would control investments in the hope that the VEBA fund grows enough to cover future health care benefits for retirees.
The challenge here is that a VEBA puts the union in charge of managing financing for future health care, Bogan noted.
He said attorneys and experts for the IUE-CWA are exploring the matter.
"We want to make sure that it's doable," Bogan said.
One big part of the challenge: The ratio of retirees to workers. Bogan estimated that the UAW has four retirees for every active worker. The IUE-CWA, on the other hand, has 10 to 14 retirees for every active worker, he estimated.
"So the VEBA has to be structured somewhat differently for us than it was for the UAW," Bogan said.
Dan Flores, a GM spokesman, declined to talk specifically about negotiating issues. "The talks are progressing," he said.
Another issue of concern for GM Moraine workers: A future automotive product for the plant.
"There's none on the table," Bogan said.
He added that a new product might become available in the future, but one isn't there now.
"That's part of the equation, too," Bogan said.
The talks started in October.
Contact this reporter at (937) 225-2390 or
tgnau@DaytonDailyNews.com.
